THE GOLD BONDS (IMMUNITIES AND EXEMPTIONS) ACT, 1993 
________ 

ARRANGEMENT OF SECTIONS 
______ 

SECTIONS 

1.  Short title and commencement. 
2.  Definitions. 
3.  Gold Bonds Scheme. 
4.  Immunities. 
5.  Gold Bonds not to be taken into account in certain cases. 
6.  Repeal and savings. 

1 

 
 
 
 
THE GOLD BONDS (IMMUNITIES AND EXEMPTIONS) ACT, 1993 

ACT NO. 25 OF 1993 

[2nd April, 1993.] 

An Act to  provide for certain  immunities to  the  subscribers of the Gold  Bonds and for certain 
exemptions from direct taxes in relation to such Bonds and for matters connected therewith 
or incidental thereto. 

WHEREAS  with a view to mobilising the idle gold resources of residents in India, it is expedient to 
provide  for  certain  immunities  and  exemptions  to  render  it  possible  for  such  residents  to  subscribe  to 
Gold Bonds; 

BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— 

1.  Short title  and  commencement.—(1) This  Act  may  be  called the  Gold  Bonds  (Immunities  and 

Exemptions) Act, 1993. 

(2) It shall be deemed to have come into force on the 31st day of January, 1993. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “Gold Bonds” means the Gold Bonds, 1998, issued by the Central Government in accordance 

with the scheme framed by that Government under section 3; 

(b) “subscriber”  means  an individual,  a  Hindu undivided  family,  trustees of a trust, a firm  or  a 
company,  being  a  resident  or  residents  in  India,  who  has  or  have  initially  subscribed  to  the  Gold 
Bonds. 

Explanation.—For the purposes of this clause, the expression “individual” shall also include,— 

(i) his legal heirs; or 

(ii)  where  a  partition  has  taken  place  among  the  members  of  the  Hindu  undivided  family, 

every member of such family having a share in the Gold Bonds; 

(c) all other words and expressions used in this Act but not defined and defined in the Income-tax 

Act, 1961 (43 of 1961) shall have the meanings respectively assigned to them in that Act. 

3. Gold Bonds Scheme.—(1) The Central Government may, by notification in the Official Gazette, 
frame a scheme for subscription to the Gold Bonds, 1998, on or after the date of commencement of this 
Act, but before the specified date. 

Explanation.—For  the  purposes  of  this  sub-section,  “specified  date”  means  the  31st  day  of  March, 
1993  or  such  other  later  date  as  the  Central  Government  may,  by  notification  in  the  Official  Gazette, 
specify in this behalf. 

(2) The scheme framed under sub-section (1) shall be laid, as soon as may be after it is framed, before 

each House of Parliament. 

4. Immunities.—(1) Notwithstanding anything contained in the Wealth-tax Act, 1957 (27 of 1957), 
the Gift-tax Act, 1958 (18 of 1958), the Income-tax Act, 1961 (43 of 1961), the Customs Act, 1962 (52 of 
1962),  the  Foreign  Exchange  Regulation  Act,  1973  (46  of  1973)  and  the  Foreign  Contribution 
(Regulation) Act, 1976 (49 of 1976),— 

(a) no subscriber shall be required to disclose, for any purpose whatsoever, the nature and source 
of acquisition of the gold subscribed for the Gold Bonds, including the source of money with which 
the gold was acquired; 

(b) no inquiry or investigation shall be commenced against any subscriber under any of the said 

Acts on the ground that such subscriber owns the Gold Bonds; and 

2 

 
 
(c)  the  fact  that  any  subscriber  owns  the  Gold  Bonds  shall  not  be  taken  into  account  for  the 

purposes of, and shall be inadmissible as evidence in, any proceedings under any of the said Acts: 

Provided that nothing contained in this sub-section shall apply where any proceedings  in respect of 
the gold subscribed by the subscriber have already been initiated before the commencement of this Act in 
accordance with the provisions of any of the aforesaid Acts. 

(2) Nothing in sub-section (1) shall apply in relation to prosecution for any offence punishable under 
Chapter IX or Chapter XVII of the Indian Penal Code (45 of 1860), the Narcotic Drugs and Psychotropic 
Substances Act, 1985 (61 of 1985), the Terrorist and Disruptive Activities (Prevention) Act, 1987 (28 of 
1987), the  Prevention  of  Corruption  Act,  1988 (49  of  1988)  or  for the  purposes  of  enforcement  of any 
civil liability. 

5. Gold Bonds not to be taken into account in certain cases.—Without prejudice to the generality 

of the provisions of section 4,— 

(a) the provisions of the Income-tax Act, 1961 (43 of 1961) shall not apply to— 

(i) any interest accruing to the subscriber from the Gold Bonds; 

(ii) any long-term capital gains arising to the subscriber; 

(b) the provisions of the Gift-tax Act, 1958 (18 of 1958) shall not apply where the gift of the Gold 

Bonds is made by a subscriber, being an individual, to his spouse, child or parent. 

6. Repeal and savings.—(1) The Gold Bonds (Immunities and Exemptions) Ordinance, 1993 (Ord. 

22 of 1993) is hereby repealed. 

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be 

deemed to have been done or taken under the corresponding provisions of this Act. 

3 

 
